期刊名称：Current Journal of Applied Science and Technology
印刷版ISSN：2457-1024
出版年度：2022
卷号：41
期号：9
页码：1-7
DOI：10.9734/cjast/2022/v41i931685
语种：English
出版社：Sciencedomain International
摘要：Cotton is the major fibre crop which is traded globally. India is one of the major producer, consumer and exporter of cotton whereas US is one of the major producer and exporter of Cotton. Cotton 2.0 Futures in Intercontinental Exchange (ICE) has been the benchmark price for cotton across the world alongside Cotlook A index. In India, Multi Commodity Exchange (MCX) cotton futures provides a platform for price discovery and price risk management for agriculturists, traders and processors. This study is carried on to identify the causality of price movements between ICE cotton futures and MCX cotton futures. It is identified that there exists a bidirectional causal relationship between Intercontinental Exchange and Multi-Commodity Exchange of India (MCX) cotton futures prices. Johansen Co-integration analysis and Vector Error Correction Model indicates the existence of long run and short run equilibrium relationship between ICE and MCX cotton futures price series. The study is helpful in establishing that ICE futures prices are also to be considered when making any price estimates by the spinning and other cotton related industry when making purchase and stocking decisions related to cotton.
